Title 9 Regulations

§ 7333. Grants.

Establishment Grants.

The Department may award Establishment Grants to
public or private non-profit rehabilitation facilities.
Such facilities include sheltered workshops, work activity
centers, facilities serving primarily blind and/or deaf,
independent living centers, rehabilitation centers, and
other community resources for the handicapped available
within the state. Such facilities shall provide vocational
rehabilitation services or transitional or extended
employment for handicapped individuals. The purpose of
such grants is to:

Provide initial or additional staffing
assistance which will be available only for personnel
who are engaged in new or expanded program activities
of the rehabilitation facility.

The initial establishment grant shall be for 12 to
15 months. Establishment grants shall be reviewed
annually. If the project continues to show effectiveness
in achieving its goals and is incorporated into the basic
program at the end of the project, the grant may be
continued and/or renewed for additional periods, however,
the grant period shall not exceed a total of 51
months.

The facility shall provide a minimum of twenty
percent of the amount of the grant during the first year.
The Department may provide up to eighty percent of the
amount of the grant from federal funds. The grantee shall
assume an increased share of the funding each project year
as an indication of ability and intent to continue the
project at the end of the project period.

Innovation and Expansion Grants.

The Department may award Innovation and Expansion
Grants to public or private non-profit organizations and
agencies. Only referrals, applicants or clients of the
Department of Rehabilitation shall be served in these
projects.

The purpose of such Grants is to plan, prepare for,
and initiate special programs that:

Increase the capability of the Department to
serve and rehabilitate severely handicapped
individuals and other designated groups who have
unusual or difficult problems in connection with their
rehabilitation.

Introduce new devices and techniques in the
provision of vocational rehabilitation
services.

Develop and provide vocational rehabilitation
services.

Enrich existing services.

Broaden the scope of existing services.

The initial Innovation and Expansion grant shall be
for 12 months. All Innovation and Expansion grants shall
be reviewed annually. If the project is effective, the
grant may be extended for additional periods, however, the
total grant period shall not exceed 36 months.

The facility shall provide a minimum of ten percent
of the amount of the grant. The department may provide up
to ninety percent of the amount of the grant from federal
funds during the first year. The grantee shall assume an
increased share of the funding each project year as an
indication of ability and intent to continue the project
at the end of the project period. These sharing ratios
shall not be allowed to vary or deviate unless approved by
the Department.

Grant Awards to Independent Living Centers.

Independent Living Centers (hereinafter
"ILC's") shall receive state grant funds to
serve a specific geographic area designated by the
Department. New ILC's shall be funded only for those areas
of the state in which independent living services are not
available. The Department shall determine when funds are
sufficient to add new ILC's or extend the geographic
service area for an existing funded ILC. The ILC shall not
be restricted from providing services outside the
geographic service area so long as these services are not
supported by state ILC grant funds.

To the extent that funds are allocated and
appropriated, monies shall be allocated to ILC's according
to the following formula:

Each ILC shall receive a $150,000 base
grant.

Any appropriated money available after payment
of the base grants shall be divided among the ILC's
based on the ratio of the total of the general
population in an ILC's geographic service area as
compared to the total of the general population in all
ILC's geographic service areas statewide.

No ILC shall receive a combined allocation of
base and population funds less than that received in
Fiscal Year 1987-88.

§ 7334. Grant Management.

The Department, in conjunction with the U.S. Department
of Education, shall establish priorities for the use of
allotted funds each year. The list of priorities shall be made
available on request to potential applicants for funds.

The Department shall establish and maintain a format to
evaluate, prioritize, and award applications for grants on the
basis of the following U.S. Department of Education
priorities:

The degree to which the applicant has responded to
the annual departmental mission and objectives.

Consumer involvement, affirmative action, and
accessibility.

Ability to meet district client needs.

Adequacy of grant planning.

Ability to administer grant funds.

Adequacy of the current program base.

Applicants
shall be notified in writing of the action
of the Department on their application for grants
status.

Applicant Appeals.

Any applicant for a grant who is dissatisfied with
the decision of the Department relative to an application
for or discontinuation of grant funding may request a
review by the Department. The request shall be in writing
the specific reason(s) for the request and the action
desired. The request shall be submitted to the Department
within 30 days of the date of the notification of
action.

The Department's Grant Review Committee reviews all
such requests. The Committee consists of the Chief Deputy
Director and the four Deputy Directors. The Committee
shall review the request and shall notify the appellant in
writing of the decision within 30 days of the date of the
request.

The decision of the Grant Review Committee is
final.

Grants shall be managed by the Department in accordance
with:

The Office of Management and Budget Circulars for
Administration of Grants.

§ 7335. Auditing Requirements.

Establishment Grants, Innovation and Expansion Grants,
and other grants and contracts shall be audited to evaluate
the financial transactions and determine compliance with the
terms of the grant or contract.

Grant and contract recipients shall arrange for
independent audits that meet the standards and needs set forth
by the Department. The audit shall be conducted in accordance
with the Department's basic audit standards for grants and
contracts and any additional audit standards required by the
Department.

Contracts for independent auditors shall provide that
their audits meet the Department's needs and requirements.
Copies of independent audit reports shall also be furnished to
the Department. Audit working papers shall be made available
to the Department and other governmental audit staff.

The Department may also utilize independent audits made
by Certified Public Accounting or Public Auditing firms, by an
audit agency of the Federal or State Government, or Department
auditors to accomplish the purpose of this article.

External or internal audits shall be made in accordance
with:

Generally accepted auditing standards including the
standards of the U.S. Accounting Office's publication
"Standards for the Audit of Governmental
Organizations Programs, Activities, and
Functions".

Federal Regulations 34 CFR, Part 74.

OMB Circular No. A-110, Federal Management Circular
FMC 74-7.

Department of Rehabilitation's "Grant Management
Handbook".

The terms of the contract.

Grant management guidelines.

Audits shall be conducted at regular intervals, usually
once a year, but at least once every two years. Audits may be
conducted at other times at the discretion of the Department.
The frequency shall depend on the nature, size and complexity
of the recipient's grant or sub-grant supported
activities.

A copy of each audit report and a description of its
resolution shall be furnished to the facility and the
appropriate regional office of the U.S. Department of
Education Audit Agency.

A copy of the audit report shall be transmitted to the
facility within 45 calendar days after the completion of the
audit.

The audit report is considered final 30 days after
mailing unless the facility appeals the findings and
recommendations in accordance with this section.

If the facility disputes any audit finding or
recommendation, the facility may, within 30 days of the
mailing of the written notice of the audit, appeal the finding
or recommendation. The appeal shall be in writing, clearly
identify all issues in dispute, contain a full statement of
the facility's position with respect to each issue, and
contain pertinent facts and reasons in support of the
facility's position. The appeal shall be addressed to the
Audit Review Committee, Department of Rehabilitation. The
Department may require the facility to submit additional
documentation relevant to the disputed findings.

The Audit Review Committee, consisting of the Chief
Deputy Director and the Departmental Deputy Directors, shall
receive appeals of audit findings, conduct hearings or
otherwise review the appeal to decide the merit of the
dispute. The decision of the committee shall be based on the
Federal and State laws and regulations and the Federal audit
guidelines.

The Departmental Audit Review Committee shall consider
the appeal and the pertinent documentation and arrive at a
decision within 45 days from receipt of the appeal.
Representatives of the facility may present information to the
Audit Review Committee orally or in writing.

The decision of the Audit Review Committee is final and
shall be in writing and shall contain findings of fact, a
determination of the issues presented, a decision and an order
to recover overpayments, if appropriate. Copies of the
decision shall be mailed to the facility.

Any overpayment determined by audit to be due and
payable shall be liquidated in the following manner:

By lump-sum payment.

By off-set against current payments due to the
provider.

In accordance with a repayment agreement executed
by the facility and the Department.

By any other method of recovery available by
law.

The Department may charge interest on any overpayment
from the time of the final decision of the audit review
committee.